Network of Influence and Money Flows in Alicante and the Balearics
In Benidorm, the Instruction Court No. 1 oversaw a major case accusing several individuals of laundering money linked to a Russian organized crime group connected to the former Soviet networks. The defendants are charged with laundering, bribery, and belonging to a criminal organization. Among them is a Russian lawyer, Alexey S., based in the Costa Blanca region, whom the court described as a political lobbyist for the People’s Party in Altea. He is accused of building a web of ties with public officials and security forces across the province of Alicante to benefit his clients.
The probe began as a wider inquiry into money laundering involving dozens of people, including local council members from Benidorm and Altea. Although the case later narrowed, the court had to formally drop charges against some defendants where evidence was lacking. Eighteen individuals were ultimately excluded from the indictment because they fell outside the defined investigation window, a period not extended due to a judicial error.
The Benidorm court authorized an abbreviated procedure and appealed to the Alicante Provincial Court. The decision reflected that the investigation intensified after the National Police in Alicante detected suspicious transfers from Russia coursing through shell companies and hawala-like arrangements. These funds were funneled into real estate and the entertainment sector across Costa Blanca and the Balearic Islands, with the judge reiterating that the operation involved “Russian businessmen with links to former Soviet organized crime.” The alleged conspiracy aimed to influence institutions by cultivating friendly relations with political actors and security personnel, in exchange for gifts and financial compensation that produced kickbacks for clients.
One defendant, the Russian lawyer Alexey S., who resides in Altea Hills, is accused of laundering money for himself and his clients. The court found that Alexey advised clients to conduct banking operations that obscured origin and ownership, including anonymized buying and selling transactions and other schemes that concealed proceeds of crime from Russia through commissions earned by the lawyer.
Network
According to the ruling, Alexey and several others under investigation forged a network of contacts with local officials in Alicante and members of the security forces. The same network allegedly used gifts or other benefits to speed up immigration procedures for clients and to obtain housing permits. It is claimed that they intervened in the process to cancel fines or shift enforcement priorities in ways favorable to their associates’ interests.
Photographs and operational notes refer to Alexey as one of the principal actors arrested in Benidorm for laundering activities tied to Russian organized crime. The case highlights alleged tactics such as steering investigations to benefit associates, leveraging connections to accelerate official procedures, and using those ties to influence law enforcement actions.
The court noted that the lawyer allegedly moved money through bank transfers designed to dodge anti-money-laundering controls, including real estate deals like a warehouse and a restaurant in Ibiza. He is said to have handled accounts for Russian businessmen suspected of laundering proceeds, and part of his influence involved delivering documents and cash to police investigators in exchange for expedited permits, such as residence permits for Russian clients or accelerated housing authorizations in Altea. These actions appear in the court’s description of the broader money-laundering framework and its attempt to entrench a foothold in local governance and administration.
The decision also points to a broader strategy that included facilitating immigration procedures for clients of the Russian network, with the aim of shortening residency formalities. The judge notes this involved payments and envelopes of documents delivered to the National Police, as part of a larger operation that included a separate investigation stream into the laundering scheme itself. In parallel, another line of inquiry considered crypto assets as an instrument of illicit finance, with figures like a programmer named Denis K. connected to the case. A colleague, Maxim K., is described as having received digital asset guidance linked to substantial sums recorded in a Bitcoin wallet, illustrating the transition some criminal networks are making toward digital currencies to move money across borders.
The court also highlighted suspicious real estate transactions and acquisitions across the Balearic Islands and Alicante. A notable case involved a Russian businessman with ties to organized crime who purchased a property in Altea Hills. The transaction, valued at hundreds of thousands of euros, involved a Russian lawyer serving as translator and an investment vehicle later tied to a luxury residential development. The financing reportedly included funds from Cyprus, Latvia, and Russia, raising questions about the origins and legitimate use of the capital involved.
In another strand of the indictment, Nikolay M. and Maxim K. are charged with using illicit funds in the acquisition of a restaurant in Ibiza and, allegedly, a stake in Ushuaïa Entertainment valued at around 70 million euros. Although some sources close to the case dispute certain aspects of these claims, the court treats them as elements of the broader laundering and asset-acquisition strategy pursued by the network.
Additional real estate activity noted by the judge includes the purchase of a house in La Nucía with a mortgage and the acquisition of two plots in Formentera, each financed through separate loans. There is also mention of 440,000 euros arriving from Russia and Switzerland to fund land purchases for a proposed campsite development in Altea. The mixture of cash transfers, property deals, and the movement of funds through diverse channels underscores the complexity of the alleged operation and the extent of the alleged influence network across Spain.